Mar 31, 2018
Report on the Indian Accounting Standards (Ind AS) Financial Statements
1. We have audited the accompanying financial statements of PERMANENT MAGNETS LIMITED (âthe Companyâ), which comprises the Balance Sheet as at March 31, 2018, the Statement of Profit and Loss (including Other Comprehensive Income),the Cash Flow Statement and the statement of Changes in Equity for the year ended and a summary of significant accounting policies and other explanatory information.
Managementâs responsibility for the Ind AS Financial Statements
2. The Companyâs Board of Directors is responsible for the matters stated in section 134 (5) of the Companies Act, 2013 (âthe Actâ) with respect to the preparation of these Ind AS financial statements that give a true and fair view of the financial position, financial performance (including Other Comprehensive Income), cash flows and changes in equity of the company in accordance with the Accounting principles generally accepted in India, including the Indian Accounting Standards specified in the Companies (Indian Accounting Standards ) Rules,2015 (as amended) under section 133 of the Act. This responsibility also includes the maintenance of adequate accounting records in accordance with the provisions of the act for safeguarding the assets of the company and for preventing and detecting the frauds and other irregularities; selection and application of appropriate accounting policies; making judgment and estimates that are reasonable and prudent; and design, implementation and maintenance of adequate internal financial control, that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of Ind AS financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.
Auditors Responsibility
3. Our responsibility is to express an opinion on these Ind AS financial statements based on our audit.
4. In conducting our audit, we have taken into account the provisions of the Act and the Rules made thereunder including the accounting and auditing standards and matters which are required to be included in the audit report under the provisions of the act and the rules made there under.
5. We conducted our audit of the Ind AS financial statements in accordance with the Standards on Auditing specified under section 143(10) of the Act and other applicable authoritative pronouncements issued by the Institute of Chartered Accountants of India. Those Standards and pronouncements require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the Ind AS financial statements are free from material misstatement.
6. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the Ind AS financial statements. The procedures selected depend on the auditorâs judgment, including the assessment of the risks of material misstatement of the Ind AS financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal financial control relevant to the Companyâs preparation of the Ind AS financial statements that give true and fair view in order to design audit procedures that are appropriate in the circumstances. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of the accounting estimates made by companiesâ directors, as well as evaluating the overall presentation of the Ind AS financial statements.
7. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the Ind AS financial statements.
Opinion
8. In our opinion and to the best of our information and according to the explanations given to us, the aforesaid Ind AS financial statements give the information required by the Act in the manner so required and give a true and fair view in conformity with the Ind AS and other accounting principles generally accepted in India, of the state of affairs of the Company as at 31 March 2018 and its profit, total comprehensive income (comprising of profit and other comprehensive income), its cash flows and the changes in equity for the year ended on that date.
9. Emphasis of Matters
a. We draw attention to Note no. 3 of notes to accounts, which states that Honorable Bombay High Court has given interim stay order against the winding up order passed (against the Company) dated 15/04/2015. Honorable High Court of Bombay had passed winding up order dated 15/04/2015 for Winding up of the company on petition filed by M/s. Savino Del Bene Freight Forwarders (I) Pvt. Ltd., and court had issued direction for appointment of official liquidator in winding up order. On the appeal against this order made by the company before Honorable Bombay High Court, Honorable Bombay High Court has given interim stay order against the winding up order passed (against the Company) dated 15/04/2015. Company has deposited Rs. 19,05,179/- Lac with interest as per direction of honorable Bombay High Court. Matter is pending before Bombay High Court and next hearing in this matter shall come up as per listing of the court.
The financial statements of the company have been prepared on Going Concern Basis on reasons mentioned in the note no. 3 of notes of accounts.
b. We draw attention to Note no. 4 of notes to accounts of the financial statement regarding non receipts of confirmation in respect of balances due under Trade receivables, Trade payables âLoan and Advances Receivable and Payableâ though company has issued letters to the debtors to that effect, adjustments, if any, required upon such confirmation is not ascertainable.
Other Matter
10. The comparative financial information of the Company for the year ended 31st March 2017 and the transition date opening balance sheet as at 1st April 2016 included in these Ind AS financial statements, are based on the statutory financial statements prepared in accordance with the Companies (Accounting Standards) Rules, 2006 audited by the predecessor auditor whose report for the year ended 31st March, 2017 and 31st March, 2016 dated May 29, 2017 and May 28, 2016 respectively expressed an unmodified opinion on those financial statements, and have been restated to comply with Ind AS. Adjustments made to the previously issued said financial information prepared in accordance with the Companies (Accounting Standards) Rules, 2006 to comply with Ind AS have been audited by us.
Our opinion is not modified in respect of above matter.
Report on Other Legal and Regulatory Requirements
11. As required by the Companies (Auditors report) Order, 2016 (âThe Orderâ) issued by the central government of India in terms of sub-section 11 of section 143 of the Act, and on the basis of such checks of the books and records of the Company as we considered appropriate and according to the information and explanations given to us, we give in the Annexure B statement on the matters specified in paragraphs 3 & 4 of the order.
12. As required by section 143(3) of the Act, we report that:
a. we have sought and obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purpose of our audit;
b. in our opinion proper books of account as required by law have been kept by the Company so far as it appears from our examination of those books;
c. the Balance Sheet, Statement of Profit and Loss (including other comprehensive income), Cash Flow Statement and the statement of changes in equity dealt with by this Report are in agreement with the books of account;
d. in our opinion, the aforesaid Ind AS financial statements comply with the Indian Accounting Standards specified under Section 133 of the Act.
e. on the basis of written representations received from the directors as on March 31, 2018, taken on record by the Board of Directors, none of the directors is disqualified as on March 31, 2018, from being appointed as a director in terms of Section 164(2) of the Act.
f. with respect to the adequacy of the internal financial controls over financial reporting of the Company and the operating effectiveness of such controls, refer to our separate report in âAnnexure Aâ; and
g. with respect to the other matters to be included in the Auditorsâ Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014, in our opinion and to the best of our knowledge and belief and according to the information and explanations given to us :
I. The company has disclosed the impact if any, of pending litigations as at March 31,2018 on its financial position in its Ind AS financial statements - Refer to Note 2 of notes to accounts
II. The Company did not have any long-term contracts including derivative contracts for which there were any material foreseeable losses.
III. The provisions relating to transferring any amounts to the investorâs education and protection fund is not applicable to the Company during the year.
IV. The reporting on disclosures relating to Specified Bank Notes is not applicable to the Company for the year ended March 31,2018.
Annexure âAâ to the Independent Auditorâs Report
[Referred to in Para 12(f) âReport on Other Legal and Regulatory Requirementsâ in our Independent Auditorâs Report of even date to the members of Permanent Magnets Limited on the Ind AS financial statement for the year ended 31st March 2018] Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section 143 of the Companies Act, 2013 (âthe Actâ)
We have audited the internal financial controls over financial reporting of PERMANENT MAGNETS LIMITED. (âThe Companyâ) as of March 31, 2018 in conjunction with our audit of the standalone Ind AS financial statements of the Company for the year ended on that date.
Managementâs Responsibility for Internal Financial Controls
The Companyâs management is responsible for establishing and maintaining internal financial controls based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls over Financial Reporting issued by the Institute of Chartered Accountants of India (ICAI). These responsibilities include the design, implementation and maintenance of adequate internal financial controls that were operating effectively for ensuring the orderly and efficient conduct of its business, including adherence to companyâs policies, the safeguarding of its assets, the prevention and detection of frauds and errors, the accuracy and completeness of the accounting records and the timely preparation of reliable financial information, as required under the Companies Act, 2013.
Auditorsâ Responsibility
Our responsibility is to express an opinion on the Companyâs internal financial controls over financial reporting based on our audit. We conducted our audit in accordance with the Guidance Note on Audit of Internal Financial Controls over Financial reporting ( the âGuidance Noteâ) and the Standards on Auditing, issued by the ICAI and deemed to be prescribed under section 143(10) of the Act, to the extent applicable to an audit of internal financial controls, both applicable to an audit of internal financial controls and both issued by the Institute of Chartered Accountants of India. Those Standards and the Guidance Note require that we comply with ethical requirement and plan and perform the audit to obtain reasonable assurance about whether adequate internal financial controls over financial reporting established and maintained and if such controls operated effectively in all material respects.
Our audit involves performing procedures to obtain audit evidence about the adequacy of the internal financial controls system over financial reporting and their operating effectiveness. Our audit of internal financial controls over financial reporting included obtaining an understanding of internal financial controls over financial reporting, assessing the risk that a material weakness exists and testing and evaluating the design and operating effectiveness of the internal controls based on the assessed risk. The procedures selected depend on the auditorâs judgment, including the assessment of the risks of material misstatement of the Standalone Financial Statements, whether due to fraud or error.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the Companyâs internal financial controls over financial reportingâs.
Meaning of Internal Financial Controls Over Financial Reporting
A companyâs internal financial control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A companyâs internal financial control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use or disposition of the companyâs assets that could have a material effect on the financial statements.
Inherent Limitation of Internal Financial Controls over Financial Reporting
Because of the inherent limitation of Internal financial controls over financial reporting, including the possibility of collision or improper management override of controls, material misstatements due to error or fraud may occur and not be detected. Also, projections of any evaluation of the internal financial controls over financial reporting to future periods are subject to the risk that the internal financial controls over financial reporting may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedure may deteriorate.
Opinion
In our opinion, the Company has, in all material respects, an adequate internal financial controls system over financial reporting and such internal controls over financial reporting were effective as at March 31,2018, based on the internal control over financial reporting criteria established by the Company considering the essentials components of internal control stated in the Guidance Note on Audit of Internal Financial Controls over Financial Reporting issued by â the Institute of Chartered Accountants of Indiaâ.
Annexure B to Independent Auditorâs Report
The referred to in paragraph 11 of Independent Auditorâs Report to the members of the Permanent Magnets Limited on the standalone financial statements for the year ended 31 March 2018, we report that:
I. (a) The company has maintained proper records showing full particulars, including quantitative details and situation of fixed assets.
(b) Company has a regular programme of physical verification of its fixed assets by which fixed assets are verified in a phased manner over a period of two years. In accordance with this programme, certain fixed assets were verified during the year and no material discrepancies were noticed on such verification. In our opinion, this periodicity of physical verification is reasonable having regard to the size of the Company and the nature of its assets.
(c) According to the information and explanations given to us and on the basis of our examination of the records of the Company, Company did not have any immovable property except 15% share of Borivali (Mumbai) property sold to Builder.
II. According to the information and explanations given to us, management has conducted physical verification of inventory at reasonable intervals during the year. In our opinion, the frequency of verification is reasonable. No material discrepancies were noticed on such physical verification.
III. According to information and explanations given to us, the Company has not granted any loans, secured or unsecured to companies, firms, limited liability partnerships or other parties covered in the register maintained under Section 189 of the Companies Act, 2013 during the year. Accordingly, clause 3 (iii) of the Order is not applicable to the Company.
IV. According to information and explanations given to us, the Company has complied with the provisions of section 185 and 186 of the Companies Act, 2013 in respect of loans, investments, guarantees and security.
V. According to information and explanations given to us, the company has not accepted any deposits from the public in accordance with the provisions of section 73 to 76 and rules framed thereunder during the year. Accordingly, clause 3 (v) of the Order is not applicable to the Company.
VI. According to the information and explanations given to us, the Central Government has not prescribed maintenance of cost records under sub-section (1) of section 148 of the Companies Actâ2013.
VII. According to the information and explanations given to us, in respect of statutory dues:
a. According to the information and explanations given to us and the records of the Company examined by us, in our opinion, the Company is regular in depositing the undisputed statutory dues including provident fund, employees state insurance, income tax, sales tax, GST,service tax, duty of customs, duty of excise, value added tax, cess, professional tax and other material statutory dues, as applicable, with the appropriate authorities.
According to the information and explanations given to us, no undisputed amounts payable in respect of provident fund, employees state insurance, income tax, sales tax, service tax, duty of customs, duty of excise, value added tax, cess, professional tax and other material statutory dues were in arrears as at 31 March 2018 for a period of more than six months from the date they became payable, except the following:
Nature of Dues |
Amount (INR in Lakhs) |
Due date |
TDS |
8.63 |
As per Traces site of Income tax (TDS) |
b. According to the information and explanations given to us, there are no dues of Income tax, Sales tax, Value added tax, Service tax, duty of customs, duty of excise which have not been deposited with the appropriate authorities on account of any dispute, except the following:
c.
Nature of Dues |
Amount (INR in Lakhs) |
Period to which the amount relates |
Forum where dispute is pending |
Excise Duty |
63.18 |
F.Y 2003-04 |
CESTAT - Mumbai |
Income Tax |
02.06 |
F.Y 2006-07 |
CIT (A) - Mumbai |
Income Tax |
03.94 |
F.Y. 2008-09 |
CIT(A) - 21 Mumbai |
VIII. According to the records of the Company examined by us and the information and explanation given to us, we are of the opinion that the company has not defaulted in repayment of dues to Financial Institutions or Banks, except following payments.
Bank |
Nature |
Amount ( INR in Lakhs) |
Due on |
Paid on |
ICICI |
Central Excise Loan |
175.85* |
Between October 2002 to October 2004 |
Not yet paid |
*it is simple interest @ 12%. During the year, Principal amount of central excise loan taken from ICICI has been repaid in full
IX. The Company has not raised any money by way of initial public offer, further public offer (including debt instruments). The company has applied funds from term loans raised during the year only for the purpose for which those term loans were raised.
X. According to the information and explanations given to us, no material fraud by the Company or on the Company by its officers or employees has been noticed or reported during the course of our audit.
XI. According to the information and explanations give to us and based on our examination of the records, the Company has paid/ provided for managerial remuneration in accordance with the requisite approvals mandated by the provisions of section 197 read with Schedule V to the Act.
XII. In our opinion and according to the information and explanations given to us, the Company is not a nidhi company. Accordingly, paragraph 3(xii) of the Order is not applicable.
XIII. According to the information and explanations given to us and based on our examinations of the records of the Company, transactions with the related parties are in compliance with sections 177 and 188 of the Act, where applicable. The details of such related party transactions have been disclosed in the financial statements as required under Indian Accounting Standard (IND - AS) 24, Related Party Disclosures specified under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014.
XIV. According to the information and explanations give to us and based on our examination of the records, the Company has not made any preferential allotment or private placement of shares or fully or partly convertible debentures during the year. Accordingly, paragraph 3(xiv) of the Order is not applicable to the Company.
XV. According to the information and explanations given to us and based on our examination of the records, the Company has not entered into non-cash transactions with directors or persons connected with him. Accordingly, paragraph 3(xv) of the Order is not applicable.
XVI. The Company is not required to be registered under Section 45-IA of the Reserve Bank of India Act, 1934. Accordingly, paragraph 3(xvi) of the Order is not applicable to the Company.
For Ramanand & Associates
Chartered Accountants
ICAI Firm Reg. No. 117776W
Sd/-
CA Karan Verma
Place: Mumbai Partner
Date: 29th May, 2018 M. No. 161335
Mar 31, 2015
Report on the Financial Statements
We have audited the accompanying financial statements of M/s Permanent
Magnets Limited ('the Company'), which comprise the Balance Sheet as at
March 31, 2015, the Statement of Profit and Loss and the Cash Flow
Statement for the year then ended and a summary of significant
accounting policies and other explanatory information.
Management's responsibility for the Financial Statements
The Company's Board of Directors is responsible for the matters stated
in section 134 (5) of the Companies Act, 2013 ("the Act")with respect
to the preparation of these financial statements that give a true and
fair view of the financial position, financial performance and cash
flows of the Company in accordance with the Accounting principles
generally accepted in India, including the accounting standards
specified under section 133 of the act, read with rule 7 of the
companies (Accounts) Rules, 2014. This responsibility also includes the
maintenance of adequate accounting records in accordance with the
provisions of the act for safeguarding the assets of the company and
for preventing and detecting the frauds and other irregularities;
selection and application of appropriate accounting policies; making
judgment and estimates that are reasonable and prudent; and design,
implementation and maintenance of internal financial control, that were
operating effectively for ensuring the accuracy and completeness of the
accounting records, relevant to the preparation and presentation of
financial statements that give a true and fair view and are free from
material misstatement, whether due to fraud or error.
Auditors Responsibility
Our responsibility is to express an opinion on these financial
statements based on our audit.
We have taken into account the provisions of the Act, the accounting
and auditing standards and matters which are required to be included in
the audit report under the provisions of the act and the rules made
thereunder.
We conducted our audit in accordance with the Standards on Auditing
specified under section 143(10) of the Act. Those Standards require
that we comply with ethical requirements and plan and perform the audit
to obtain reasonable assurance about whether the financial statements
are free from material misstatement. An audit involves performing
procedures to obtain audit evidence about the amounts and disclosures
in the financial statements. The procedures selected depend on the
auditor's judgment, including the assessment of the risks of material
misstatement of the financial statements, whether due to fraud or
error. In making those risk assessments; the auditor considers internal
control relevant to the Company's preparation of the financial
statements that give true and fair view in order to design audit
procedures that are appropriate in the circumstances. An audit also
includes evaluating the appropriateness of accounting policies used and
the reasonableness of the accounting estimates made by Companies
directors, as well as evaluating the overall presentation of the
financial statements.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion on the financial
statements.
Opinion
In our opinion and to the best of our information and according to the
explanations given to us, the aforesaid financial statements, give the
information required by the Act in the manner so required and give a
true and fair view in conformity with the accounting principles
generally accepted in India:
i. In the case of the Balance sheet, of the state of affairs of the
company as at March 31, 2015;
ii. In the case of the Statement of Profit and Loss, of the profit for
the year ended on that date; and
iii. In the case of the Cash Flow Statement, of the cash flows for the
year ended on that date.
Emphasis of Matters
We draw attention to Note no. 3 of notes to accounts, which states that
the Honorable High Court of Bombay has passed order for Winding up of
the company on petition filed by M/s. Savino Del Bene Freight
Forwarders (I) Pvt. Ltd., and court has issued direction for
appointment of official liquidator in winding up order. The financial
statements of the company have been prepared on Going Concern Basis on
reasons mentioned in the note no 3.
Our report is not modified in respect of this matter.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor's Report) Order, 2015 issued
by the Central Government of India in terms of sub-section (11) of
section 143 of the Ac (hereinafter to as the 'Order), and on the basis
of such checks of the books and records of the Company as we considered
appropriate and according to the information and explanations given to
us, we give in the Annexure a statement on the matters specified in
paragraphs 3 and 4 of the Order.
As required by section 143(3) of the Act, we report that:
a. We have sought and obtained all the information and explanations
which to the best of our knowledge and belief were necessary for the
purpose of our audit;
b. In our opinion proper books of account as required by law have been
kept by the Company so far as it appears from our examination of those
books;
c. The Balance Sheet, Statement of Profit and Loss and Cash Flow
Statement dealt with by this report are in agreement with the books of
account;
d. In our opinion, the Balance Sheet, Statement of Profit and Loss and
Cash Flow Statement comply with the Accounting Standards referred to in
section 133 of the Companies Act, 2013, read with rule 7 of the
Companies (Accounts) Rules, 2014.
e. On the basis of written representations received from the directors
as on March 31, 2015 under section 164(2) of the Companies Act, 2013,
and taken on record by the Board of Directors, none of the directors is
disqualified as on March 31 2015, from being appointed as a director in
terms of clause (g) of sub-section (1) of section 274 of the Companies
Act, 1956, provisions of which are consistent with those under section
164(2) of the Companies Act, 2013.
f. The going concern matter described in the Emphasis of Matters
paragraph above, in our opinion, may have an adverse effect on the
functioning of the Company.
g. With respect to the other matters to be included in the Auditor's
Report in accordance with Rule 11 of the Companies (Audit and Auditors)
Rules, 2014, in our opinion and to the best of our information and
according to the explanations given to us:
i. The company has disclosed the impact of pending litigation on its
financial position in its financial statement.
ii. The company has made provision, as required under the applicable
law or Accounting Standards, for material foreseeable losses, if any,
on long term contracts including derivative contracts. The company
neither entered into any derivative contract during the year nor have
any outstanding derivative contract at the year-end.
iii. The provisions relating to transferring any amounts to the
Investor Education and Protection Fund is not applicable to the Company
during the year.
ADDITIONAL INFORMATION ANNEXED TO THE INDEPENDENT AUDITORS' REPORT
Referred to in Paragraph 1 under "Report on Other Legal and Regulatory
Requirements" section of our report of even date
1. In respect of its Fixed Assets:
a. The Company has maintained proper records showing full particulars
including quantitative details and situation of fixed assets on the
basis of available information.
b. The fixed assets have been physically verified by the management
during the year in a phased periodical manner, which in our opinion is
reasonable, having regard to the size of the Company and nature of its
assets. No material discrepancies were noticed on such physical
verification.
c. In our opinion, the Company has not disposed of substantial part of
fixed assets during the year and the going concern status of the
Company is not affected.
2. In respect of its Inventories:
a. As explained to us, inventories, except goods in transit, have been
physically verified by the management at regular intervals during the
year.
b. In our opinion and as per the information and explanations given to
us, procedures of physical verification of inventory followed by the
management are reasonable and adequate in relation to the size of the
Company and nature of its business.
c. The Company is maintaining proper records of inventories. In our
opinion, discrepancies noticed on physical verification of inventory
were not material in relation to the operations of the Company and the
same have been properly dealt with in the books of account.
3. In respect of loans, secured or unsecured, granted or taken by the
Company to/from companies, firms or other parties covered in the
register maintained under Section 189 of the Companies Act, 2013:
a. As per the information and explanation given to us, the Company has
not granted loans to Companies, Firms or Other Parties covered in the
register maintained under section 189 of the Companies Act 2013.
b. As per the information and explanation given to us, the Company not
has taken loans from parties which are covered in the registered
maintained under section 189 of the Companies Act 2013
4. In our opinion and according to the information and explanations
given to us, there are adequate internal control procedures
commensurate with the size of the Company and the nature of its
business with regard to purchase of inventory and fixed assets and for
the sale of goods. During the course of audit, no major weakness has
been noticed in the internal controls.
5. According to information and explanations give to us, the company
has not accepted any deposits from the public.
6. We have broadly reviewed the cost records maintained by the Company
pursuant to the Companies (Cost Records and Audit) Rules, 2014 read
with Companies (Cost Records and Audit) Amendment Rules, 2014
prescribed by the Central Government under Section 148 of the Companies
Act, 2013 and are of the opinion that, prima facie, the prescribed cost
records have been maintained. We have, however, not made a detailed
examination of the cost records with a view to determine whether they
are accurate or complete.
7. In respect of statutory dues:
a. According to the records of the company, undisputed statutory dues
including Provident fund, Employees' State Insurance, Income-Tax, Sales
Tax, Wealth Tax, Service Tax, Customs Duty, Excise Duty, Cess, and
other statutory dues have been generally regularly deposited with the
appropriate authorities. According to the information and explanations
given to us, no undisputed amounts payable in respect of the aforesaid
dues were outstanding as at March 31, 2015 for a period of more than
six months from the date of becoming payable, except the following:
Nature of Dues Amount
(Rs. in Lakhs) Due Date
Income Tax 0.54 30th Oct, 2007
Income Tax 16.02 19th March, 2012
Sales Tax 0.73 28th March, 2014
WCT TDS 0.28 21st September,2014
Service tax 3.60 5th October, 2014
b. The disputed statutory dues that have not been deposited on account
of matters pending before appropriate authorities are as under:
Nature of Dues Amount (Rs.
in Lakhs) Period to
which the Forum where dispute is
amount
relates pending
Excise Duty 63.18 F.Y. 2003-04 CESTAT Â Mumbai
Income Tax 02.06 F.Y. 2006-07 CIT (A) Â Mumbai
c. The amount required to be transferred to Investor Education and
Protection fund, if any has been transferred with the stipulated time
in accordance with the provisions of the Companies Act, 1956 and rules
made thereunder.
8. The accumulated loss of the Company at the end of the year is Rs.
78,94,680/- which is less than fifth percent of the net worth of the
Company. The Company has not incurred any cash losses during the
financial year covered by our audit and the immediately preceding
financial year.
9. Based on our audit procedures and according to the information and
explanation given to us, we are of the opinion that the company has not
defaulted in repayment of dues to Financial Institutions or Banks,
except following payments:
Bank Nature Amount
(Rs. in
Lakhs) Due on Paid on
ICICI Bank Central Excise
Loan 215.53 Between October 2002 Not Paid
(including
interest) to October 2004
10. According to the information and explanations given to us, the
Company has not given any guarantee for loans taken by others from
banks or financial institutions, the terms and conditions whereof are
prejudicial to the interest of the Company.
11. The company has applied funds from term loans raised during the
year only for the purpose for which those term loans were raised.
12. To the best of our knowledge and according to the information and
explanations given to us, no fraud by the Company and no material fraud
on the Company has been noticed or reported during the year.
For Jayesh Sanghrajka & Co. LLP
Chartered Accountants
Firm Reg. No. 104184W/ W100075
Hemant Agrawal
Partner
M. No. 403143
Place: Mumbai
Date: 30th May 2015
Mar 31, 2014
We have audited the accompanying financial statements of PERMANENT
MAGNETS LIMITED ("the Company"), which comprise the Balance Sheet as at
March 31, 2014, the Statement of Profit and Loss and Cash Flow
Statement for the year then ended, and a summary of significant
accounting policies and other explanatory information.
Management''s Responsibility for the Financial Statements
Management is responsible for the preparation of these financial
statements that give a true and fair view of the financial position,
financial performance and cash flows of the Company in accordance with
the Accounting Standards referred to in sub-section (3C) of section 211
of the Companies Act, 1956 ("the Act") (which continue to be applicable
in respect of section 133 of Companies Act, 2013 in terms of general
circular 15/2013 dated 13/09/2013 of the Ministry of Corporate Affairs)
and in accordance with accounting principal generally accepted in
India. This responsibility includes the design, implementation and
maintenance of internal control relevant to the preparation and
presentation of the financial statements that give a true and fair view
and are free from material misstatement, whether due to fraud or error.
Auditor''s Responsibility
Our responsibility is to express an opinion on these financial
statements based on our audit. We conducted our audit in accordance
with the Standards on Auditing issued by the Institute of Chartered
Accountants of India. Those Standards require that we comply with
ethical requirements and plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free
from material misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and disclosures in the financial statements. The procedures
selected depend on the auditor''s judgment, including the assessment of
the risks of material misstatement of the financial statements, whether
due to fraud or error. In making those risk assessments, the auditor
considers internal control relevant to the Company''s preparation and
fair presentation of the financial statements in order to design audit
procedures that are appropriate in the circumstances. An audit also
includes evaluating the appropriateness of accounting policies used and
the reasonableness of the accounting estimates made by management, as
well as evaluating the overall presentation of the financial
statements.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion.
Opinion
In our opinion and to the best of our information and according to the
explanations given to us, the aforesaid financial statements give the
information required by the Act in the manner so required and give a
true and fair view in conformity with the accounting principles
generally accepted in India:
a. In the case of the Balance Sheet, of the state of affairs of the
Company as at March 31, 2014
b. In the case of the Statement of Profit and Loss, of loss for the
year ended on that date; and
c. In the case of the Cash Flow Statement, of the cash flows for the
year ended on that date.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor''s Report) Order, 2003 as
amended by the Companies (Auditor''s Report) order 2004 ("the Order")
issued by the Central Government of India in terms of sub-section (4A)
of section 227 of the Act, we give in the Annexure a statement on the
matters specified in paragraphs 4 and 5 of the Order.
2. As required by section 227(3) of the Act, we report that:
a. We have obtained all the information and explanations which to the
best of our knowledge and belief were necessary for the purpose of our
audit.
b. In our opinion proper books of account as required by law have been
kept by the Company so far as appears from our examination of those
books.
c. The Balance Sheet, Statement of Profit and Loss, and Cash Flow
Statement dealt with by this Report are in agreement with the books of
account.
d. In our opinion, the Balance Sheet, the Statement of Profit and Loss,
and Cash Flow Statement comply with the Accounting Standards referred
to in subsection (3C) of section 211 of the Companies Act, 1956.
e. On the basis of written representations received from the directors
as on March 31, 2014, taken on record by the Board of Directors, none
of the directors is disqualified as on March 31, 2014, from being
appointed as a director in terms of clause (g) of sub-section (1) of
section 274 of the Companies Act, 1956.
Referred to in Paragraph 1 under the heading of "report on other legal
and regulatory requirements" of our report of even date
1. In respect of its fixed assets:
a. The Company has maintained proper records showing full particulars
including quantitative details and situation of fixed assets on the
basis of available information.
b. As explained to us, the fixed assets have been physically verified
by the management during the year in a phased periodical manner, which
in our opinion is reasonable, having regard to the size of the Company
and nature of its assets. No material discrepancies were noticed on
such physical verification.
c. In our opinion, the Company has not disposed of substantial part of
fixed assets during the year and the going concern status of the
Company is not affected.
2. In respect of its inventories:
a. As explained to us, inventories, except goods in transit, have been
physically verified by the management at regular intervals during the
year.
b. In our opinion and according to the information and explanations
given to us, the procedures of physical verification of inventories
followed by the management are reasonable and adequate in relation to
the size of the Company and the nature of its business.
c. The Company has maintained proper records of inventories. As
explained to us, there was no material discrepancies noticed on
physical verification of inventory as compared to the book records.
3. In respect of loans, secured or unsecured, granted or taken by the
Company to/from companies, firms or other parties covered in the
register maintained under Section 301 of the Companies Act, 1956:
a. As per the information and explanation given to us, the Company has
not granted loans to Companies, Firms or Other Parties covered in the
register maintained under section 301 of the Companies Act 1956.
b. As per the information and explanation given to us, the Company not
has taken loans from parties which are covered in the registered
maintained under section 301 of the Companies Act 1956.
4. In our opinion and according to the information and explanations
given to us, there is an adequate internal control system commensurate
with the size of the Company and the nature of its business with regard
to purchase of inventories, fixed assets and with regards to sale of
goods and services. During the course of our audit, we have not
observed any major weakness in internal control system.
5. In respect of transactions covered under Section 301 of the
Companies Act, 1956:
a. In our opinion and according to the information and explanations
given to us, the transactions made in pursuance of contracts or
arrangements, that needed to be entered into in the register maintained
under Section 301 of the Companies Act, 1956 have been so entered.
b. In our opinion and according to the information and explanations
given to us, Transactions aggregating during the year to Rs. 5,00,000/-
or more in respect of each party, have been made at prices which appear
reasonable as per information available with the company.
6. According to the information and explanations given to us, the
Company has not accepted any deposits within the meaning of provisions
of section 58A, 58AA or any other relevant provision of the Companies
Act, 1956 and Companies (Acceptance of Deposits) Rules, 1975.
Therefore, the provisions of Clause (vi) of paragraph 4 of the Order
are not applicable to the Company.
7. In our opinion and according to the information and explanations
given to us, the Company has an internal audit system commensurate with
its size and nature of its business.
8. We have broadly reviewed the cost records maintained by the Company
pursuant to the Companies (Cost Accounting Records) Rules, 2011
prescribed by the Central Government under Section 209(1)(d) of the
Companies Act, 1956 and are of the opinion that prima facie the
prescribed cost records have been maintained. We have, however, not
made a detailed examination of the cost records with a view to
determine whether they are accurate or complete.
9. In respect of statutory dues:
a. According to the records of the company, undisputed statutory dues
including Provident fund, Investor Education and Protection Fund,
Employees'' State Insurance, Income-Tax, Sales Tax, Wealth Tax, Service
Tax, Customs Duty, Excise Duty, Cess, and other statutory dues have
been generally regularly deposited with the appropriate authorities.
According to the information and explanations given to us, no
undisputed amounts payable in respect of the aforesaid dues were
outstanding as at March 31, 2014 for a period of more than six months
from the date of becoming payable, except the following:
Nature of Dues Amount (Rs. in Lakhs) Due Date
Income Tax 00.54 30th Oct, 2007
Income Tax 26.00 19th March, 2012
b. The disputed statutory dues that have not been deposited on account
of matters pending before appropriate authorities are as under:
Nature of Dues Amount Period to which Forum where
(Rs. in Lakhs) the amount relates dispute is pending
Excise Duty 63.18 F.Y. 2003-04 CESTAT - Mumbai
Income Tax 02.06 F.Y. 2006-07 CIT (A) - Mumbai
10. The accumulated loss of the company as at the end of the year is
Rs. 1,10,44,898/- which is less than fifty percent of the net worth of
the company. The company does not incurred cash losses during the
financial year covered by our audit but incurred cash losses
immediately preceding financial year.
11. Based on our audit procedures and according to the information and
explanation given to us, we are of the opinion that the company has not
defaulted in repayment of dues to Financial Institutions or Banks,
except following payments:
Bank Nature Amount Due on Paid on
(Rs. in Lakhs)
ICICI Bank Central Excise Between October
Loan with 2002 to
interest 208.63 October 2004 Not Paid
12. In our opinion and according to the information and explanation
given to us, no loans and advances have been granted by the Company on
the basis of security by way of pledge of shares, debentures and other
securities.
13. In our opinion, the Company is not a chit fund/nidhi/mutual benefit
fund/society. Therefore, the provisions of clause (xiii) of paragraph 4
of the Order are not applicable to the Company.
14. In our opinion, the company has maintained proper records of the
transactions and contracts in respect of dealing or trading in shares,
securities, debentures and other investments and timely entries have
been made therein. All these investments have been held by the company
in its own name.
15. According to the information and explanation given to us, the
Company has not given any guarantees for loans taken by others from
banks or financial institutions.
16. On the basis of the record examined by us, and relying on the
overall reconciliation of fund raised from term loan and total fund
required for the purpose for which the term loans were obtained, we
have to state that the company has, prime facie, applied the term loan
for the purpose for which it is obtained. However, one to one nexus
between the receipt of funds and utilization of the same is not
possible to establish.
17. According to the information and explanation given to us and On the
basis of an overall examination of the Balance Sheet of the company, we
are of the opinion that there are no funds raised on a short-term
basis, which have been used for long term investment.
18. During the year, the Company has not made any preferential
allotment of shares to parties and companies covered in the Register
maintained under Section 301 of the Companies Act, 1956.
19. The Company has not issued any debentures. Therefore, the
provisions of clause (xix) of paragraph 4 of the Order are not
applicable to the Company.
20. During the year, the company has not raised money by public issue.
Therefore, the provisions of clause (xx) of paragraph 4 of the Order
are not applicable to the Company.
21. In our opinion and according to the information and explanation
given to us, no material fraud on or by the Company has been noticed or
reported during the year.
For Jayesh Sanghrajka & Co.
Chartered Accountants
Firm Reg. No. 104184W
Ashish Sheth
Partner
M. No. 107162
Place: Mumbai
Date: 29th May 2014
Mar 31, 2012
1. We have audited the attached Balance Sheet of Permanent Magnets
Ltd. as at 31st March 2012, the Statement of Profit and Loss for the
year ended on that date and the Cash Flow Statement for the year ended
on that date annexed thereto These financial statements are the
responsibility of the Company's management. Our responsibility is to
express an opinion on these financial statements based on our audit.
2. We conducted our audit in accordance with Auditing Standards,
generally accepted in India. Those standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatements. An audit
includes examining, on a test basis, evidence supporting the amounts
and disclosures in financial statements. An audit also includes
assessing the accounting principles used and significant estimates made
by the management, as well as evaluating the overall financial
statement presentation. We believe that our audit provides a reasonable
basis tor our opinion.
3. As required by the Companies (Auditor's Report) Order, 2003 as
amended by Companies (Auditor's Report) (Amendment) Order, 2004 issued
by the Central Government of India in terms of sub-section (4A) of
section 227 of the Companies Act, 1956, we enclose in the Annexure
hereto a statement on the matters specified in paragraphs 4 and 5 of
the said Order.
4. Further to our comments in the Annexure referred to in paragraph 3
above, we report that:
a) We have obtained all the information and explanations which to the
best of our knowledge and belief were necessary for the purposes of our
audit;
b) In our opinion, proper books of account, as required by law, have
been kept by the Company, so far as appears from our examination of
those books;
c) The Balance Sheet, Statement of Profit and Loss and Cash Flow
Statement dealt with by this report are in agreement with the books of
account;
d) In our opinion the Balance Sheet, Statement of Profit and Loss and
Cash Flow Statement dealt with by this report comply with the mandatory
Accounting Standards referred in sub-section (3C) of section 211 of the
Companies Act, 1956 to the extent applicable.
e) On the basis of written representations received from the Directors
as on 31st March 2012 and taken on record by the Board of Directors, we
report that none of the directors is disqualified as on 31st March 2012
from being appointed as directors in terms of clause (g) of sub section
(1) of section 274 of the Companies Act 1956;
f) In our opinion and to the best of our information and according to
the explanations given to us, the said accounts read together with the
Significant Accounting Policies and other notes thereon give the
information required by the Companies Act, 1956, in the manner so
required, and present a true and fair view, in conformity with the
accounting principles generally accepted in India:
(i) in the case of Balance Sheet, of the State of affairs of the
Company as at 31st March, 20I2
(ii) in the case of the Statement of Profit and Loss, of the Loss for
the year ended on that date; and
(iii) in the case of the Cash Flows Statement, of the Cash Flows for
the year ended on that date.
ANNEXURE TO AUDITORS' REPORT
Referred to in Paragraph 3 of our report of even date
1. In respect of its fixed assets:
a. The Company has maintained proper records showing full particulars
including quantitative details and situation of fixed assets on the
basis of available information.
b. As explained to us, the fixed assets have been physically verified
by the management during the year in a phased periodical manner, which
in our opinion is reasonable, having regard to the size of the Company
and nature of its assets. No material discrepancies were noticed on
such physical verification.
c. In our opinion, the Company has not disposed of substantial part of
fixed assets during the year and the going concern status of the
Company is not affected.
2. In respect of its inventories:
a. As explained to us, inventories have been physically verified by
the management at regular intervals during the year.
b. In our opinion and according to the information and explanations
given to us, the procedures of physical verification of inventories
followed by the management are reasonable and adequate in relation to
the size of the Company and the nature of its business.
c. The Company has maintained proper records of inventories. As
explained to us, there was no material discrepancies noticed on
physical verification of inventory as compared to the book records.
3. In respect of loans, secured or unsecured, granted or taken by the
Company to/from companies, firms or other parties covered in the
register maintained under Section 301 of the Companies Act, 1956:
a. As per the information and explanation given to us, the Company has
not granted loans to any company which is covered in the register
maintained under section 301 of the Companies Act, 1956.
b. As per the information and explanation given to us, the Company not
has taken loans from parties which are covered in the registered
maintained under section 301 of the Companies Act 1956
4. In our opinion and according to the information and explanations
given to us, there is adequate internal control system commensurate
with the size of the Company and the nature of its business for the
purchase of inventory, fixed assets and for the sale of goods and
services. During the course of our audit, we have not observed any
major weaknesses in internal control system.
5. In respect of transactions covered under Section 301 of the
Companies Act, 1956:
a. In our opinion and according to the information and explanations
given to us, the transactions made in pursuance of contracts or
arrangements, that needed to be entered into in the register maintained
under Section 301 of the Companies Act, 1956 have been so entered.
b. in our opinion and according to the information and explanations
given to us, Transactions aggregating during the year to Rs. 5,00,000/-
or more in respect of each party, have been made at prices which appear
reasonable as per information available with the company.
6. According to the information and explanations given to us, the
Company has not accepted any deposits from the public, Therefore, the
provisions of Clause (vi) of paragraph 4 of the Order are not
applicable to the Company.
7. In our opinion, the Company has an internal audit system
commensurate with its size and nature of its business.
8. We have broadly reviewed the cost records maintained by the Company
pursuant to the Companies (Cost Accounting Records) Rules, 2011
prescribed by the Central Government under Section 209(1)(d) of the
Companies Act, 1956 and are of the opinion that prima facie the
prescribed cost records have been maintained. We have, however, not
made a detailed examination of the cost records with a view to
determine whether they are accurate or complete.
9. In respect of statutory dues:
a. According to the records of the company, undisputed statutory dues
including Provident fund. Investor Education and Protection Fund,
Employees' State Insurance, Income-Tax, Sales Tax, Wealth Tax, Service
Tax, Customs Duty, Excise Duty, Cess, and other statutory dues have
been generally regularly deposited with the appropriate authorities.
According to the Information and explanations given to us, except
following cases, no other undisputed amounts payable in respect of the
aforesaid dues were outstanding as at March 31, 2012 for a period of
more than six months from the date of becoming payable.
Nature Amount Due Date
(Rs. in Lacs)
Income Tax 0.54 30th Oct, 2007
Income Tax 31.00 19th April, 2012
b. According to the information and explanations given to us, as on
31.03.2012, there are no disputed amount payable in respect of Income
Tax, Wealth Tax, Sales Tax, Custom Duty, except the following :
Nature of Dues Amount Period to which Forum where
(Rs. in the amount relates Dispute is
Lakhs) Pending
Excise Duty 63.18 A.Y. 2003-2004 CESTAT - Mumbai
Income Tax 02.06 A.Y. 2007-2008 CIT (A) - Mumbai
10. The Company does not have accumulated loss as at the year end,
however it has incurred Cash loss during the financial year covered
under audit.
11 Based on our audit procedures and according to the information and
explanation given to us, we are of the opinion that except for
following, the Company has not defaulted in repayment of dues to
financial institutions or banks.
Bank Nature Amount Due on Paid on
(Rs. in
Lakhs)
ICICI Bank Central 57.50 Between Oct 2002 Not paid
Excise Loan to Oct 2004
Central Term Loan 62.50 37.03.2009 Rs. 20 Lakhs
Bank of Paid on
India 20/04/12
Rs. 42.50
Lakhs
Outstanding
12. In our opinion and according to the information and explanation
given to us, no loans and advances have been granted by the Company on
the basis of security by way of pledge of shares, debentures and other
securities.
13. In our opinion, the Company is not a chit fund or a nidhi/mutual
benefit fund/ society. Therefore, clause 4(xiii) of the Companies
(Auditor's Report) Order 2003 is not applicable to the Company.
14. In our opinion, the company has maintained proper records of the
transactions and contracts in respect of dealing or trading in shares,
securities, debentures and other investments and timely entries have
been made therein. All these investments have been held by the company
in the name of the company.
15. According to the information and explanation given to us, the
Company has not given any guarantees for loans taken by others from
banks or financial institutions.
16. On the basis of the record examined by us, and relying on the
overall reconciliation of fund raised from term loan and total fund
required for the purpose for which the term loans were obtained, we
have to state that the company has, prime facie, applied the term loan
for the purpose for which it is obtained. However, one to one nexus
between the receipt of funds and utilisation of the same is not
possible to establish.
17. According to the information and explanation given to us and On
the basis of an overall examination of the Balance Sheet of the
company, we are of the opinion that there are no funds raised on a
short-term basis, which have been used for long term investment
18. During the year, the Company has not made any preferential
allotment of shares to parties and companies covered in the Register
maintained under Section 301 of the Companies Act, 1956.
19. The Company has not issued any debentures. Therefore, the
provisions of Clause (xix) of paragraph 4 of the Order are not
applicable to the Company.
20. During the year, the company has not raised money by public issue.
Therefore, the provisions of Clause (xx) of paragraph 4 of the Order
are not applicable to the Company.
21. In our opinion and according to the information and explanation
given to us, no material fraud on or by the Company has been noticed or
reported during the year.
For Jayesh Sanghrajka & Co.
Chartered Accountants
Ashish Sheth
M. No. 107162
Partner
Place: Mumbai
Date : 30th May, 2012
Mar 31, 2010
We have audited the attached Balance Sheet of Permanent Magnets Ltd. as
at 31st March 2010, the Profit and Loss Account for the year ended on
that date and the Cash Flow Statement for the year ended on that date
annexed thereto. These financial statements are the responsibility of
the Companys management. Our responsibility is to express an opinion
on these financial statements based on our audit,
1. We conducted our audit in accordance with Auditing Standards
generally accepted in India. Those standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatements. An audit
includes examining, on a test basis, evidence supporting the amounts
and disclosures in financial statements. An audit also includes
assessing the accounting principles used and significant estimates made
by the management, as well as evaluating the overall financial
statement presentation. We believe that our audit provides a
reasonable basis for our opinion.
2. As required by the Companies (Auditors Report) Order, 2003 as
amended by Companies (Auditors Report) (Amendment) Order, 2004 issued
by the Central Government of India in terms of sub-section (4A) of
section 227 of the Companies Act, 1956, we enclose in the Annexure
hereto a statement on the matters specified in paragraphs 4 and 5 of
the said Order.
3. Further to our comments in the Annexure referred to in paragraph 2
above, we report that:
a) We have obtained all the information and explanations which to the
best of our knowledge and belief were necessary for the purposes of our
audit;
b) In our opinion, proper books of account, as required bylaw, have
been kept by the Company, so far as appears from our examination of
those books;
c) The Balance Sheet, Profit Loss Account and Cash Flow Statement dealt
with by this report are in agreement with the books of account;
d) In our opinion the Balance Sheet, Profit and Loss Account and Cash
Flow Statement dealt with by this report comply with the mandatory
Accounting Standards referred in sub-section (3C) of section 211 of the
Companies Act, 1956;
e) In our opinion, and based on information and explanations given to
us, none of the directors are disqualified as on 31st March 2010 from
being appointed as directors in terms of clause (g)of subsection
(1) of section 274 of the Companies Act 1956;
f) In our opinion and to the best of our information and according to
the explanations given to us, the said accounts read together with the
Significant Accounting Policies and other notes thereon give the
information required by the Companies Act, 1956, in the manner so
required, and present a true and fair view, in conformity with the
accounting principles generally accepted in India:
(i) In so far as it relates to Balance Sheet, of the state of affairs
of the Company as at 31 st March, 2010; and
(ii) In so far as it relates to the Profit and Loss Account, of the
Profit of the Company for the year ended on that date; and
(iii) In the case of the Cash Flow Statement, of the Cash
Flows for the year ended on that date.
Annexure to Auditors Report Refened to in Paragraph 2 of our report
even date
1. In respect of its fixed assets:
a. The Company has maintained proper records showing full particulars
including quantitative details and situation of fixed assets.
b. As explained to us, the fixed assets have been pnysically verified
by the management during the year in a phased periodical manner, which
in our opinion is reasonable, having regard to the size of the Company
and nature of its assets. No material discrepancies were noticed on such
physical verification.
c. There was no substantial disposal of fixed asset during the year.
2. In respect of its inventories:
a. As explained to us, inventories have been physically verified by
the management at regular intervals during the year.
b. In our opinion and according to the information and explanations
given to us, the procedures of physical verification of inventories
followed by the management are reasonable and adequate in relation to
the size of the Company and the nature of its business.
c. The Company has maintained proper records of inventories. As
explained to us, there was no material discrepancies noticed on
physical verification of inventory as compared to the book records.
3. In respect of loans, secured or unsecured, granted or taken by the
Company to/from companies, firms or other parties covered in the
register maintained under Section 301 of the Companies Act, 1956:
a. The Company has granted loans to three companies which are covered
in the register maintained under section 301 of the Companies Act 1956
aggregating to Rs. 158.14 Lakhs in earlier years. The outstanding
balance as on 31/03/2010 in Rs. 169.21 Lakhs.
b. Wo interest is charged in case of two parties. In case of one party
interest is charged at a rate less than the rate at which the company
has borrowed money. The terms and conditions thereof are prima facie
prejudicial to the interest of the company.
c. The receipt of principal amount and interest is not regular.
d. No reasonable steps have been taken by the company for recovery of
the principal and interest amount
e. As per the information and explanation given to us, the Company has
not taken loans from parties which are covered in the register
maintained under section 301.
4. In our opinion and according to the information and explanations
given to us, there are adequate internal control systems commensurate
with the size of the Company and the nature of its business for the
purchase of inventory, fixed assets and for the sale of goods and
services. During the course of our audit, we have not observed any
major weaknesses in internal control system.
5. In respect of transactions covered under Section 301 of the
Companies Act, 1956:
a. In our opinion and according to the information and explanations
given to us, the transactions made in pursuance of contracts or
arrangements, that needed to be entered into in the register maintained
under Section 301 of the Companies Act, 1956 have beenso entered.
b. Transactions aggregating during the year to Rs. 5,00,000/- or more
in respect of each party, have been made at prices which are reasonable
having regard to prevailing market prices for such goods and materials
available with the Company or prices at which transactions for similar
goods have been made with other parties at the relevanttime,
6. During the year the Company has not accepted any deposits from the
public. Hence directives issued by the Reserve Bank of India and the
provision of sections 53A & 58AA or any other relevant provision of the
Act of the Companies Act, 1956 & the rules framed there under are not
applicable.
7. In our opinion, the internal audit carried by the indepencent firm
of Chartered Accountant, is commensurate with the size of the company
and nature of its business.
8. According to the information given to us, the Central government
has not prescribed maintenance of cost records under Section 209 (1)
(d) of the companies Act, 1956.
9. In respect of statutory dues:
a. According to the information and explanation given to us, during
the year the company was regular in depositing undisputed statutory
dues including Provident fund, Investor Education and Protection Fund,
Employees State Insurance, Income Tax, Sales tsx. Wealth Tax, Customs
Duty, Excise Duty, Cess and other material statutory dues applicable to
it, with the appropriate authorities except the following:
Nature of Dues Amount Due Date Date of Payment
Tax Deducted at Source 2,58,805 07.05.2009 31.07.2009
Tax Deducted at Source 3,58,950 07.06.2009 31.07.2009
Tax Deducted at Source 1,91,341 07.07.2009 31.07.2009
Tax Deducted at Source 1,76,872 07.08.2009 26.10.2009
Tax Deducted at Source 3,19,625 07.09.2009 26.10.2009
Tax Deducted at Source 2,35,233 07.10.2009 26.10.2009
Tax Deducted at Source 2,94,995 07.12.2009 13.01.2010
Tax Deducted at Source 2.86,233 07.01.2010 13.01.2010
Tax Deducted at Source 2,90,532 07.02.2010 25.02.2010
ESIC 3595 21.09.2009 22.09.2009
ESIC 4686 21.01.2010 22.01.2010
ESIC 4876 21.02.2010 09.03.2010
b. As at March 31,2010, there have been no undisputed dues which have
not been deposited with the respective authorities in respect of Income
Tax, Wealth Tax, Excise Duty and Cess or any other statutory dues for a
period of more than six months from the date they became payable except
the following:
Nature of Dues Amount (in Rs.) Due Date
Income Tax 53,517 30th
October,2007
Fringe Benefit
Tax 4,60,247 30th
September
,2009
c. According to the information and explanations given to us, as on
31.3.2010, there are no disputed amount payable in respect of Income
Tax, Wealth Tax, Sales Tax, Custom Duty, except the following:
Name of the
Statue Nature of Dues Amount Forum
Central Excise Act Excise Duty 63,18,000 CESTAT
Income Tax Act Income Tax 2,05,801 CIT(A)
10. The Company has no accumulated losses and has not incurred any
cash losses during the financial year covered by our audit or in (he
immediately preceding financial year.
11. Based on our audit procedures and according to the information and
explanation given to us, we are of the opinion that except Central
Excise loan of Rs. 71.75 Lakhs excluding interest and penalty) from
ICICI Bank payable between October 2002 to October 20O4,the company has
not defaulted in repayment of dues to financial institutions or banks.
The Company has not issued any Debentures and hence question of
repayment to debenture holders does not arise.
12. In our opinion and according to the information and explanation
given to us, no loans and advances have been granted by the Company on
the basis of security by way of pledge of shares, debentures and other
securities.
13. In our opinion, the Company is not a chit fund or a nidhi mutual
benefit fund/ society. Therefore, clause 4(xiii) of the Companies
{Auditors Report) Order 2003 is not applicable to the Company.
14. In our opinion, the company is not a dealer or trader in shares,
securities, debentures and other investments. Accordingly, the
provisions of clause 4(xiv) of the CARC are not applicable to the
company.
15. According to the information and explanation given to us, the
Company has not given any guarantees for loans taken by others from
banks or financial institutions.
16. On the basis of the record examined by us, and relying en the
overall reconciliation of fund raised from term loan and total fund
required for the purpose for which the term loans were obtained, we
have to state that the company has, prime facie, applied the term loan
for the purpose for which it is obtained. However, one to one nexus
between the receipt of funds and utilisation of the same is not
possible to establish.
17. On the basis of an overall examination of the Balance Sheet of the
company, in our opinion, there are no funds raised on a short-term
basis, which have been used for long term purposes and vice versa.
18. During the year, the Company has not made any preferential
allotment of shares to parties and companies covered in the Register
maintained under Section 301 of the Conpanies Act, 1956.
19. The Company has not issued any debentures.
20. The company has not raised any money through public issues during
year hence the disclosure of end use of the money raised through public
issue does notarise.
21. In our opinion and according to the information and explanation
given to us, no fraud on or by the Company has been noticed or reported
during the year that causes the financial statements lo be materially
misstated.
For Jayesh Sanghrajka & Co.
Chartered Accountants
Registration No. 104184W
Sd/-
Ashish Sheth
M.No.107162
Partner
Place: Mumbai
Date : 29th May, 2010